Provision for Depreciation Account Advantages, Calculation

To account for asset depreciation, companies must apply the allocation of asset costs to the balance sheet over the asset’s useful life. The accountant should periodically test all major fixed assets for impairment. Impairment is present when an asset’s carrying amount is greater than its undiscounted future cash flows. When this is the case, record […]

Provision for Depreciation Account Advantages, Calculation

To account for asset depreciation, companies must apply the allocation of asset costs to the balance sheet over the asset’s useful life. The accountant should periodically test all major fixed assets for impairment. Impairment is present when an asset’s carrying amount is greater than its undiscounted future cash flows. When this is the case, record […]